GAM,
Frankly, I have been reading articles on this and it's hard for me believe what you are saying just on your word. Toss me some links that contain the information you preach?
I believe some of it, just not all of it.
Josh
SLK 32
http://www.infores.com/public/us/newsEvents/press/2005/us_news_100405.htm
There's a lot of info there, but it's pretty solid. Basically, it points out that since there is a higher price for gas, the consumers are going to get hit by price increases because no retailler is going to pay extra for delivery of their goods, and let it eat into their profit.. not when they can raise their prices and protect their bottom line.
It's the beginnings of inflation. The only reason that the economy hasn't slipped into a recession is because stock/bond trading markets are outpacing inflation, but only just, if my memory serves me.
http://www.finfacts.com/irelandbusinessnews/publish/article_10003036.shtml
Regarding what I said about collusion: I was a bit hasty.. there's no proof of it, yet. The simple problem that I see is that even though the costs of the oil per standard barrel is roughly the same for each petroleum company, they are differentiated by the costs of refining the different types of oil (ie, high sulphur content oil = More refining to meet environmental and operational requirements), and the pay structures (and other associated overhead) for employees as well as transport costs.
Basically, BP, Imperial Oil, Sunoco, and most other major fuel and oil companies have widely varying costs due to refining, labour, managerial and delivery costs. It doesn't track (with me at least) that they can all bring their product to market, given those wide overhead costs and supplimental profit margins, at about the same cost per unit (litres or Gallons, take your pick) across all the companies. I hear claims of profits of merely 3% per unit, but if they're inflating their refining and delivery costs, I call BS.
Transeat In Exemplum: Let this stand as the example.
^^^ Wonder why the strategic oil reserves haven't been opened up to stabilise the price of oil yet?
Those oil guys are thicker than thieves...
Transeat In Exemplum: Let this stand as the example.
i have a good idea that would have work 5 years ago. . .
DONT VOTE FOR BUSH!!
i say congress needs to pass a law where gas cant be more than $1.50 nationwide. the damn oil companies loved Hurricane katrina because they could add on an extra couple cents for a "shortage". the only thing we can hope for is Bush and Cheney to be assasinated which almost happened in Russia. they are the biggest problem in this country. i think we gotta go French Riots on their @$$ for them to understand.
Don't forget Rumsfield(sp?).
"i promise we won't get drunk, and go out in boat in the dark, stand up in the boat and fire the gun into the air unless we have life jackets on."
ShiftyCav wrote:i have a good idea that would have work 5 years ago. . .
DONT VOTE FOR BUSH!!
i say congress needs to pass a law where gas cant be more than $1.50 nationwide. the damn oil companies loved Hurricane katrina because they could add on an extra couple cents for a "shortage". the only thing we can hope for is Bush and Cheney to be assasinated which almost happened in Russia. they are the biggest problem in this country. i think we gotta go French Riots on their @$$ for them to understand.
Just take consolement that he can't run again, he's done.
I think $1.50 is a bit low. You have to realize that at the current rate of inflation gas should be around 2.34 a gallon in the USA. But the summer is coming to a close and wouldn't you know it, gas at the wawa (less than 1/4mile) from my apartment is now down to 2.05, I think we'll see sub 2.00 by the end of winter.
There making money off heating oil and natural gas now.
-Chris
hell no $1.50 aint too low. they wanted to jack up the price for the "shortage" so i think they should be raped just like we were. or maybe they should start the switch to ethanol which would cheap as hell
Actually, your incorrect. Most "good things", which we all know isn't a good thing, come in Trilogies. There is still another Bush, sadly he is the governor my state. He said he won't run for 2008, but I'm sure he will be around.
Opening the reserves would be a mistake in my opinion. Let us save that for the next round, or when we possibly really need it. Obviousy the USA survived this years hurricane season and I see no point at this time to open the reserve. I just hope the politics see what happened this year and prepare a little better for emergency situations for the next year. At that point, I would really think things to be fishy.
Josh
SLK 32
The problem is that there is no way to cool off the market. Prices are going to keep going up until the market bubble either bursts (which isn't likely, the energy markets have been trending up since the last major "market correction" in the 80's.
The thing is, the Strategic Oil Reserve WAS opened up (with loans... like WTF?) but there is an expected payback to the Reserve. A small sell off on the order of 10 Million Barrels would throw a very cold bucket of water on the oil market.
Just in case you're wondering, the Strategic oil reserve is 700 million barrels of Light Sweet/Heavy Sour crude (about 70% Sour).
10 Million Barrels is negligible, but won't happen with a president that's got the oil industry's paws deep in his and his father's pockets.
Transeat In Exemplum: Let this stand as the example.
